Solution-Calculate the activity rates

Calculate the activity rates

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Reference no: EM132994224

Question - Taylor Corporation produces two models of their leather brief cases: deluxe and standard. The four activities and four drivers are as follows: Hours Activities: Cost Driver Deluxe Standard Total Cutting $ 96,000 Cutting hours 2,200 1,300 3,500 Assembling 42,000 Assembly hours 1,150 980 2,130 Inspecting 15,000 Inspection hours 800 500 1,300 Reworking 8,000 Rework hours 20 35 55

Required -

A. Calculate the consumption ratios for the four drivers.

B. Calculate the activity rates that would be used to assign costs to each product. Round your answer to two decimal places.

C. Calculate the unit cost assuming that 500 deluxe models were produced and 700 standard models were produced.

Reference no: EM132994224

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Calculate the activity rates

Reference no: EM132994224

Reference no: EM132994224

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